Using C 2 , the Closer the Observed Frequency of Each

question 93

True/False

Using c 2 , the closer the observed frequency of each cell is to the expected frequency for that cell, the higher the probability of rejecting H 0 .

---

Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standards set for quantity and price.

Actual Operations

The real-world activities carried out by a company, as opposed to planned or projected operations.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost of the materials.